Posts Tagged ‘Francesca von Habsburg’

During our research for ‘The Thyssen Art Macabre’, we became witnesses to the art of what is now being called ‘aggressive’ tax avoidance, as a result of our participation in a lengthy masterclass with one of the world’s leading exponents. It was Heini Thyssen himself who admitted to us that his primary mission in life had not been the collecting of art or the maintenance of an industrial fortune, but the avoidance of paying tax. Indeed on page 319 of our book we quoted his astonishingly frank statement word for word: ‘I am a tax evader by profession. If you wanted to be correct, I should be in jail’.

The most intensive part of this masterclass came when Heini chose to take his son Heini Junior (Georg Thyssen) to court, in order to break up a Bermudan trust and regain control of the family fortune. This was not only a structure that had been designed to make such disassembly as difficult as possible and thus protect the fortune from alimony claims, irresponsible siblings and, in Heini’s case, his own extravagance, but it was also meant to minimise its exposure to tax liabilities.

I was astonished that, considering the financial importance of this process to the Thyssen-Bornemiszas, the cost of which, one way or another, they would all be contributing to, not one member of the family displayed any interest in visiting the island, to see if their legal and financial representatives were handling the task with due diligence; a process that would eventually result in a legal bill of some $150,000,000. So I offered to go on their behalf, in the knowledge that the very rich rarely do anything for themselves, even collect art; preferring to have others do things on their behalf.

It was in Bermuda that Caroline and I got to know Heini’s barristers, Queen’s Counsellors Michael Crystal and Robert Ham and their local solicitors, Appleby Spurling & Kempe; experts in tax efficient, financial logistics – and in whose gardens we would complete each day’s activities with refreshing bottles of chilled champagne. Then, more recently, I was reminded once again of their existence when a vast cache of their highly privileged clients’ records were mysteriously leaked to the International Consortium of Investigative Journalists from the offices of what had now been rebranded as simply Appleby. This resulted in a spectacular media exposure which has come to be known as the ‘Paradise Papers’.

Around the same time that this financial pasta was beginning to slide off the edge of the plate, the less financially privileged were starting to realise just how iniquitous the super rich really can be. There is increasingly a perceived imbalance reminiscent of feudal conditions, which seem to be favoured not least by those whose marriage has led them to co-opt scions of defunct aristocratic dynasties. The highly paid advisors, meanwhile, had started putting strategies into place in order to meet the PR-challenges of the forced increase in transparency now being applied to offshore financial instruments and their wealthy users.

With this backdrop, Heini Thyssen’s daughter, ’The Archduchess’ Francesca von Habsburg, whose name featured prominently in the ‘Paradise Papers’, wasted no time in announcing to the world her own seemingly admirable ‘mission statement’. This was to use part of her estimated $350,000,000 personal fortune, – inherited from her father, some of which was provided by the Spanish tax payers, when he sold them half his art collection – to save the world’s oceans from pollution.

She also began referring to herself as an ‘executive producer’ and ‘agent of change’.

In order to assist her in such an intellectually complex activity, she had recruited the services of a major Broadway-based public relations organisation called Resnicow and Associates, which specialises in ‘online strategy’, ‘core missions’ and ‘sponsorship“; though considering her exceptional wealth one would not have thought that Francesca Habsburg-Thyssen needed the latter. But I know from my own experience that she has invariably asked others to contribute financially to her various socio-cultural activities over the years. And this has also included those in control of public funds.

The apple seemed not to have fallen far from the tree and her father’s influence possibly continued to affect Francesca Thyssen’s exposure – or not, as the case may be – to tax in Austria, Switzerland, the Czech Republic, the United Kingdom, Jamaica or anywhere else she may see fit to lay her head.

But presumably Resnicow is intending to garner sufficient public enthusiasm for Francesca Habsburg’s cultural endeavours in the months ahead to successfully persuade those who care, that should she indeed be aggressively minimising her exposure to the payment of tax, she will nevertheless be perceived as a true philanthropist, acting only in the public’s cultural and environmental interests.

Meanwhile, one should perhaps be reminded that the last time there was a Thyssen financial interest on Broadway was during the Second World War, when it was the location of the Thyssen family’s Union Banking Corporation in which they and, so it was rumoured, a number of prominent Nazi party members kept a few million emergency dollars, and Prescott Bush, grandfather of George W Bush, was a director!